The Warriors new San Francisco arena already has a $1 billion price tag, but the latest estimates show the project is set to surpass that budget and could yet fall behind schedule.
The budget problems are largely due to the rapidly rising cost of repairing and upgrading piers 30-32, where the arena will be located. According to the San Francisco Chronicle, at least five groups have made attempts to develop piers 30-32 but eventually gave up, including one group led by Oracle CEO Larry Ellison, who was outbid for the Warriors back in summer 2010.
Under the current arrangement, the Warriors would pay to upgrade the piers, then lease them from the city for 66 years, while San Francisco slowly repaid them for the upgrades. The cost of the upgrade was originally estimated at around $60 million, but as of late July the Warriors acknowledged that the cost had risen to $120 million. According to a city memo obtained by the Chronicle on Sunday, the true cost could be as high as $170 million, even though San Francisco has refused to repay the Warriors more than $120 million.
Clearly, the repairs and upgrades to piers 30-32 aren't going as planned. With minimal progress made to date, it remains to be seen if the projected 2017-18 start date is realistic or just wishful thinking on the Warriors part. The Warriors recently announced upgrades to Oracle Arena for next season intended to expand the number of premium seats available, but it's unclear if that announcement was tied to potential delays to the new San Francisco arena.
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